Hong Kong shares close sharply lower led by properties; China Eastern plunges

Share prices closed sharply lower, dropping for the fourth straight session, as the property sector was hit by worries that rising inflation may prevent the US Federal Reserve from cutting interest rates further.

The US Labor Department announced Friday that consumer price index (CPI) rose 0.8 pct in November, marking the fastest pace in more than two years. Core inflation, which excludes volatile food and energy prices, was up 0.3 pct - the biggest gain since January.

Mainland financials and property firms were sold off on expectations of new tightening measures by Beijing after China's CPI rose 6.9 pct in November, hitting a 11-year high.

China Eastern Airlines plunged nearly 6.4 pct on doubts whether minority shareholders will approve the acquisition of a 25 pct stake in the mainland carrier by Singapore Airlines and Temasek Holdings.

Uni-President China Holdings, the mainland unit of Taiwan conglomerate Uni-President Enterprises, finished up 12.5 pct on its debut after slipping below the IPO price in early trade.

The Hang Seng index closed down 967.06 points or 3.51 pct at 26,596.58, off a low of 26,551.37 and high of 27,245.51.

Turnover was 104.44 bln hkd.

The property sub-index was down 2,244.05 points or 6.11 pct at 34,500.56.

The Hang Seng China Enterprises index was down 566.07 points or 3.55 pct at 15,391.39.

China Eastern fell 0.43 hkd or 6.39 pct to 6.3.

Uni-President China closed at 4.75 hkd against the IPO price of 4.22.